Below is a traditional cost-volume–profit graph for Willow, Inc for the month of July. Willow, Inc...

Below is a traditional cost-volume–profit graph for Willow, Inc for the month of July. Willow, Inc sells a single product- a specialty chair. The graph is not to scale. cvp graph The points on the graph are as follows: A: (0, 2800) B: (1000,47500) C: (1000, 36000) 1. What is the per unit selling price for each chair? 2. What is the fixed costs for the month of July? 3. What is net income when 1000 chairs are sold? 4. What is the variable cost of one chair?

Solutions

Expert Solution

ekkarill92 answered 4 months ago

Next > < Previous

Related Solutions

Break-Even Sales and Cost-Volume-Profit Graph Last year, Ridgecrest Inc. had sales of $3,739,680, based on a...

Break-Even Sales and Cost-Volume-Profit Graph Last year, Ridgecrest Inc. had sales of $3,739,680, based on a unit selling price of $420. The variable cost per unit was $290, and fixed costs were $826,800. The maximum sales within Ridgecrest Inc.'s relevant range are 16,000 units. Ridgecrest Inc. is considering a proposal to spend an additional $165,100 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Instructions: 1. Construct a cost-volume-profit graph on your...

Break-Even Sales and Cost-Volume-Profit Graph Last year, Ridgecrest Inc. had sales of $4,527,600, based on a...

Break-Even Sales and Cost-Volume-Profit Graph Last year, Ridgecrest Inc. had sales of $4,527,600, based on a unit selling price of $440. The variable cost per unit was $250, and fixed costswere $1,396,500. The maximum sales within Ridgecrest Inc.'s relevant range are 18,000 units. Ridgecrest Inc. is considering a proposal to spend an additional $279,300 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Instructions: 1. Construct a cost-volume-profit graph on your own...

Cost volume & profit

What is break-even point ?

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1...

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1 Ajayi Art, Inc. is started with an investment of $250,000 cash. July 1 Ajayi purchases office equipment for $22,250 by signing a 10% note (interest and principal to be paid over the next 12 months). July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,000. July 8 Purchases art supplies from Wacky Art Co....

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1...

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1 Ajayi Art, Inc. is started with an investment of $275,000 cash. July 1 Ajayi purchases office equipment for $22,500 by signing a 10% note (interest and principal to be paid over the next 12 months). July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,030. July 8 Purchases art supplies from Wacky Art Co....

Cost-Volume Analysis Include graph interpretation below the graph. Make sure it is clear, complete, and easy...

Cost-Volume Analysis Include graph interpretation below the graph. Make sure it is clear, complete, and easy to find. A manager is trying to determine which of three production processes to implement to produce a component for a new product line. Process A would entail a variable cost of $17 per unit and an annual fixed cost of $150,000. Process B would entail a variable cost of $11 per unit and an annual fixed cost of $250,000. Process C would entail...

2. Cost-Volume-Profit (CVP)

2. Cost-Volume-Profit (CVP) 40 points a. Assignment Question on Cost Volume Profit (CVP) MMC Nutri Company is a small family fast food restaurant that opened in 2015, serving tropical cuisine to its mainly Afro-American, Asian and African customers. Because of its hot ingredients, few others patronize the food. This business serves its popular dish Jollof rice, fish or meat stew, and rice flour porridge, as a meal for $9 a serving. Its variable cost per serving is $4.10 and...

Chapter – Cost/Volume/Profit Explain the meaning of fixed, variable, and semi-variable expenses. In a cost/volume/profit analysis,...

Chapter – Cost/Volume/Profit Explain the meaning of fixed, variable, and semi-variable expenses. In a cost/volume/profit analysis, what is the profit number if you are computing a breakeven point (I will allow a one word answer here). What are the limiting assumptions with a cost/volume/profit analysis?

Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price...

Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $56, a unit variable cost of $28, and fixed costs of $313,600. Instructions: 1. Compute the anticipated break-even sales in units. units 2. Compute the sales (units) required to realize operating income of $109,200. units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 22,400 units within the relevant range. From your chart, indicate whether each of the following sales levels...

Cost-Volume-Profit Jen & Berry’s sold 100,000 pints of ice cream last month according to the following...

Cost-Volume-Profit Jen & Berry’s sold 100,000 pints of ice cream last month according to the following contribution format income statement: Total $ Per Unit $ SALES $325,000 $3.25 VARIABLE COSTS 200,000 2.00 CONTRIBUTION MARGIN $ 125,000 $ 1.25 FIXED COSTS 50,000 NET INCOME $ 75,000 A competing company,...

Subjects